The number of new cars registered in the UK increased by some 2.5 per cent in 2007 when compared with the previous year.
The change means 59,143 additional cars were sold in 2007 compared to 2006 with 2,404,007 units rolling off the forecourt over the whole year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
This is some 90,000 units ahead of predictions and represents the sixth best trading year on record.
"Last year, demand for new cars was stronger than many had predicted," said Paul Everitt, SMMT chief executive.
"There is little sign the US credit crisis or rising fuel prices have affected demand and we foresee only limited changes through 2008."
The strength of the UK economy over 2007 proved beneficial according to the SMMT.
"The UK economy currently remains resilient and the new car market is ultra-competitive," continued Mr Everitt.
"Car makers will continue to fight hard for every sale and consumers will benefit from unprecedented choice and excellent deals."
Growth in the volume of sales was particularly strong in the final quarter, which saw increases of some 4.6 per cent, or 20,516 units - the strongest rate of growth since the first quarter of 2004.
The SMMT noted an increase in the number of environmentally-friendly vehicles being sold during the last year.
For example, fuel-efficient diesel models take a record 40.2 per cent share of the market, along with the 'supermini' and small family cars sectors, with the number of units increasing by 17,729 and 25,084 in each sector respectively.
Ford remained top of the sales league, selling almost 1.2 million vehicles, although, there was evidence of an improved performance from Audi, Honda, Mini and Vauxhall.
The Focus remained the most popular model, with 126,928 units sold.